What are the disadvantages of saving money in the bank?

[Milz]

If you're worried about the bank folding up then that's not a problem because I believe the Central Bank of your country has backup funds for every bank. The only disadvantage of saving in the bank is it's low interest rate

 

[Greatguy1]

Due to my experience with many banks folding up, I've developed more interest in this subject. Are our money safe in the bank?
What would happen if a bank folds up, Will our money be gone? are there ways to retrieve our money?

Your money is insured by the deposit insurance company. In a case of bank folding up, you will be compensated after a rigorous process of vetting and confirmation. Banks can liquidate, banks can go under but with the size of Banks these days, banks mostly merge instead of going under.
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Due to my experience with many banks folding up, I've developed more interest in this subject. Are our money safe in the bank?
What would happen if a bank folds up, Will our money be gone? are there ways to retrieve our money?

Your money is insured by the deposit insurance company. In a case of bank folding up, you will be compensated after a rigorous process of vetting and confirmation. Banks can liquidate, banks can go under but with the size of Banks these days, banks mostly merge instead of going under.

 

[KvngMurphy]

Alot of disadvantages for saving money in the bank expecially if you are a Nigerian. Our leaders do all things possible to make sure life is difficult for everyone and at this point, I totally regret being a Nigerian. The banking sector also sets policies to fraustrate our savings efforts and that's totally unfair

 

[Sake]

Happened once but not to me, there's a major bank.. big bank in my country that closed up now money of the people trapped in there and they're trying to get em back but it takes too long too many processes and they were given a compensation in the ends. That's it. Too much trouble .

 

[Chibson]

I don't think that if a bank folds all the money will be gone like that. Saving money in the bank has advantages and disadvantages. One of the advantages is that nobody is gonna steal money and of course you don't need to worry about it. One of the disadvantages is that the currency of that particular country you are may devaluate and of course if you're planning to travel abroad the money will be shortened.

 

[Nabeel119]

Savings accounts are easy to open and you can withdraw and deposit money anytime (within federal limits) at ATMs or via 24-hour, online access, unlike long-term investment accounts. Many institutions will allow you to link your savings account to other accounts, like a checking account, which can help you to avoid costly overdraw fees. This also allows you to quickly transfer funds from one account to another.

 

[Trojan8]

To your question, I would say the disadvantage of saving in the bank abounds. But if you are worried about your deposits you don't have to be. There are insurance firms and also the central bank keeps a certain percentage of the entire deposits with them. The main problem is that saving in banks offers very low interest rates so in most cases it is not profitabel.

 

[Kelvin7656]

Savings Account Disadvantages

• Minimum Balance Requirements. Most savings accounts have minimum balance requirements or monthly maintenance fees. ...
• Low Interest Rates. ...
• Federal Withdrawal Limits. ...
• Access and availability. ...
• Rates can change. ...
• Inflation. ...
• Compounded interest.

 

[Chumzy]

Saving in a bank has its own advantages too but just like everything it has its cons. One is that you earn almost nothing on the money while it is lying idle there. The bank uses your money for their own personal trading and make a fortune out of it.

 

[Ogbest]

Due to my experience with many banks folding up, I've developed more interest in this subject. Are our money safe in the bank?
What would happen if a bank folds up, Will our money be gone? are there ways to retrieve our money?

In this modern world, I don't think things like that can take place again. I think this is why in my state, CBN did some certain things the did. Your money is save apart from the little amount they are directly collecting every time. Bank remains the place to save our money.

 

[Prettyjanie]

One of the major disadvantages of saving money in the bank is that you risk losing your money when the bank folds up. Also banks coming up with unnecessary charges thereby making the value of your money go down.

 

[Suba]

In my country, there is a deposit insurance agency, so our savings are safe if the bank goes bankrupt, liquidates or merges, but usually deposits under $ 1 million will be prioritized. Even so, there are some disadvantages of saving money in a bank, low interest, fees, limited transactions.

 

[eojo2401]

The only disadvantage I see in saving money in bank is the kind of stress you may undergo when you want to withdraw your money or when you have issues with your account and you need to visit the banking Hall for rectification. The kind of population you will meet there will scared you. Infact there's a bank in my area, if you want to go there, you must go there by 5:am to pick number, if not, you will not have access to the banking Hall that very day.

 

[Mostee501]

Banking is an important part of savings money and it is more secured to keep money in the bank other than at home for security purposes. On the other hand,keeping money in the bank doesn't necessarily mean the money will be increasing,except you deposit more but investing the money rightly,brings about more income.

 

[Neeta313]

Well saving money in the bank is a safe means of keeping your money, although different forms of charges will be deducted from your savings. Also you may have one or two issues that you will have to go to the bank to sort out, I dont think there is any serious disadvantage saving in the bank.

 

[Chris Jo]

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Due to my experience with many banks folding up, I've developed more interest in this subject. Are our money safe in the bank?
What would happen if a bank folds up, Will our money be gone? are there ways to retrieve our money?

Due to my experience with many banks folding up, I've developed more interest in this subject. Are our money safe in the bank?
What would happen if a bank folds up, Will our money be gone? are there ways to retrieve our money?

Due to my experience with many banks folding up, I've developed more interest in this subject. Are our money safe in the bank?
What would happen if a bank folds up, Will our money be gone? are there ways to retrieve our money?

There's a saying that goes thus 'whatever has an advantage has a disadvantage. Keep money in the bank helps to keep our savings safe but one disadvantage here is that you can not invest those funds in a profitable business that would bring returns in the future!

 

[Good-Person]

I am not a big fan of saving money into bank accounts. The problem is that identity theft is a really big issue in most of the countries and anyone could hack or steal your bank information. You also have to pay a huge amount of transaction and withdrawal fees when it comes to bank accounts. Moreover, you must also pay some sort of tax if you hold an account and have money in it.

 

[Keibah]

Money in the bank is secure but it accrues little or no interest for the individual. Most times, you even get deductions for all sorts of unknown maintenance. Other than that, you can keep your money in the bank but the best advice is to invest idle cash.

 

[Popular]

For me bank has many disadvantages such as lack of given customers maximum attention for problems,after saving your for a business deal when go to withdraw it from your account you can get problems from eg adequate working staffs and network problems.

 

[Justin]

I don't see any disadvantages. Apart from the security of your funds, you also get interest on your saving. In our country, if you save in fxed depost for the term of one year, you can earn 12 percent.